The Research aimed to identify the impact of regulatory challenges on the sustainability and competitiveness of SMEs in the Sultanate of Oman, and used the innovative descriptive approach. The Researcher highlighted the key factors which may help overcoming such challenges: finance, automation of processes, marketing management, and employment of human resources. As for financing, it is essential for growing and sustainability, since it supports innovation and expansion. Stakeholders also stressed that financial facilities contribute to achieving targets. Similarly, automation of process makes a very significant contribution to efficiency increase and operational costs reduction, which in turn enhance competitiveness. For its part, marketing management, especially with the use of digital instruments, enables enterprises to reach new clients and increase market share, which is essential for enterprise growing. And, lastly, employment and development of qualified human force is essential for improving enterprises’ performance, and stakeholders have pointed out to the importance of in-service training in building workers’ skills. Consequently, a conceptual framework was developed, which is based on the relationship between the dimensions of the independent variable, organizational challenges, and the dependent variable, sustainability for SMEs.